Recently the Meredith Village Savings Bank made a gift of $32,500 to NeighborWorks Southern New Hampshire. The gift helps NeighborWorks New Hampshire’s which offers education services for first time home buyers specifically pre-purchase and post-purchase home ownership and financial literacy.
Visit nwsnh.org to learn more about NeighborWorks Southern New Hampshire.
Education comes at a price, and not just the cost of the degree itself. We’re talking about the inability to take advantage of today’s low mortgage rates and stable prices.
Student loans are now cited most often by young buyers as the main expense that prevents them from saving for a down payment. Nothing new there, perhaps. But a new report is the first to quantify the impact.
According to John Burns Real Estate Consulting, some 414,000 new home transactions will be lost this year because of student debt. At the average price of $200,000 per house, that translates to about $83 billion in lost business.
Purchasing your very first home should not really be complicated, but it’s not a walk in the park, either. One of the most confusing things for first time home buyers isn’t finding first time home buyer programs, it’s the vernacular used. Buying a home is like learning a new language.
Redfin, a real estate company that serves 22 metropolitan areas. They put together a list of 10 real estate terms everyone should know:
1.)Buyer’s Agent vs. Listing Agent: There are usually two agents involved when you buy a home; the “buyer’s agent,” who represents you, and the “listing agent,” who represents the home seller. One thing many people don’t realize is that when buying a home, you don’t have to pay your real estate agent; they’ll get a commission from the home seller.
2.) Fixed Rate vs. Adjustable Rate Mortgages: Conventional loans include “fixed rate” and “adjustable rate” mortgages. A fixed rate mortgage has a predetermined interest rate throughout the life of the loan; the most common are for 30 years. An adjustable rate mortgage has a variable interest rate; the most common are for 5, 7, or 10 years.
3.)Pre-approval Letter: Before you apply for a mortgage or even start looking for a home, you should get a pre-approval letter from the bank, which is an estimate of how much they’ll lend you. This letter will help you determine what you can afford, and ensures home sellers that you will be able to get a loan when needed.
If you are currently a first time home buyer, and shopping for a property in the great state of Arizona, you are definitely in luck. Property values are currently at their lowest levels in years, and Arizona has unfortunately been hit hard by the foreclosure market. Put that together with low mortgage rates and you are in for a perfect time to get started in owning Real Estate.
There are terrific deals to be had in cities like, Phoenix, Tucson, Sedona and more. Even though the values have dropped dramatically for home sellers, current home buyers and the lucky first time home buyer, can get in on the Real Estate appreciation that will be happening again in the coming years.
The second best thing about buying property now or in the near future, is mortgage rates are still currently at 50 year lows. There are some great first time home buyer programs available from FHA, as well as from Fannie Mae traditional mortgages. Low down payments and low interest rates make it very affordable for first time home buyers to get started.
Be sure to get pre-approved by your mortgage lender prior to shopping for your new home. This way, you will know exactly what your are qualified for and how much home you can afford. Put off paying for any big ticket items like a car for now and invest instead in Real Estate which over the long haul always continues to go up in price.
This current Real Estate market is offering a wonderful opportunity to all who are purchasing today. We have never seen such low rates on mortgages coupled with an extreme correction in housing values. This makes the perfect buyer’s opportunity.
Arizona is one of five states hit the hardest with REO’s (foreclosures)and therefore prices have really corrected from the high levels of 2006. Mortgage rates are staying low for new buyer financing. This is a two way incredible opportunity for the first time home buyer, and one that has not been offered up before.
If you are an Arizona First Time Home Buyer, you are at the right place at the right time. Go for it.
Tips for First Time Home Buyers – First Things First
There are many people jumping in to buy their first home and do not even have a clue as to how it works. Asking questions can sometimes get you vague answers and knowing just what to do during your first home buying experience can be scary. The first two tips for first time home buyers are simple, getting a real estate agent and finding a home.
Tips for First Time Home Buyers – Getting a Real Estate Agent
The first tips for first time home buyers that you have to learn about is the real estate agent. There are two types of agents: the selling agent and the buying agent. If you are looking at a home, you do not want to look at the home with the selling agent because they are contractually bound to the seller and must try to get the best deal possible for the seller. Ask your friends about a good agent; chances are if they are homeowners, they will easily be able to point you to a reputable agent.
When meeting your agent for the first time, pay attention. Does he answer your questions professionally? Does he have frequent interruptions during your meeting? Does he respond in a timely manner when you call or email? All of these are important factors. If he seems too busy for you at your first meeting, that is a sign he will always be too busy during the next meetings. Getting the right real estate agent is your first of two tips for first time home buyers.
Tips for First Time Home Buyer – Getting a Home
Now that you have found an agent you like, the next set of tips for first time home buyers is getting a home. Check out all of the possible choices. If you are trying to stay within a budget, you can find foreclosed homes and even HUD homes that may fit the bill. Housing and Urban Development (HUD) homes are usually sold as is so it is important to know just what you’re getting yourself into. If you choose to buy a HUD home, you should know that you will need an agent that is approved for HUD home sales.
Consider the value of the home before making an offer. Choose a home that will rise in resale value and you should have no problems. Up and coming neighborhoods are a great way to get a low cost home that will appreciate over time.
Make sure the home of your choice has no deed restrictions. Make sure if you want to add a pool to your new home that it is allowed without restrictions on the deed or you will soon find yourself in deep water without a pool.
Make sure you get the inspections done before buying your home because what you don’t see is sometimes what will cost the most in the long run to repair.
Finally, make sure that all is running smooth in the purchase. If you have questions, get them answered before it is too late. The last thing you want to do is buy a home that you are not happy with. Two important tips for first time home buyers are essential and will help you get the home of your dreams.
Buying a home is a big step and being a first time buyer can be a very exciting time. There is a special feeling of being able to pull up into your own driveway and walk into your own home. There are some challenges as you travel down the path to home ownership but the payoff will be well worth the small amount of headache you have on the way there. Living in an apartment for so many years will be well worth it when you get to walk up and unlock your own door for the very first time. Here are a few first time home buyer tips to help you on the path to ownership:
1. First Time Home Buyer Tips – Real Estate Agent
The first thing for first time home buyers is to find an agent. You should find an agent who has the time to deal with you and can answer your questions in a professional manner. This should not turn into a sales pitch! Keep looking until you find the agent who takes the time to consider your situation.
2. First Time Home Buyer Tips – Finances
The next thing you want to be sure of is your finances. Check your credit report and clear up any questionable marks on your credit. If there are errors in your report, you should clear them up and get something in writing stating you have done so. You will want your credit report to be clear and concise, and if there are errors on the report, they will only hurt you in the long run.
3. First Time Home Buyer Tips – Mortgage
The third of four first time home buyer tips is learning the lingo when it comes to mortgages and if there are terms you do not understand then you should try to familiarize yourself with them. Knowing the difference between a pre-qualified letter and a pre-approval could mean the difference between winning a bid and losing it. It is important to know what all of these terms mean and how they affect you.
4. First Time Home Buyer Tips – House Choices
Lastly, the fourth of four first time home buyer tips is knowing what it is you are looking for. Knowing how much you want to spend and what the amenities are in the house of your dreams are important. There are things that you will be willing to let slide but know exactly where you stand firm in your choices and stick to your plan.
Buying your new home takes time and knowing what it is you are looking for will only help you in the long run. Take your time and make careful choices to ensure your happiness with your new purchase with these four first time home buyer tips, you’re on your way.
Do You Know When You are Ready to Buy Your First House?
Many millions of citizens in the United States are considering purchasing their first home soon or further down the road. The decrease in interest rates has made owning a home a more obtainable dream for many. Buying a home is really a better solution than paying rent for a home or apartment if you give it some serious thought.
If you want to buy a house, you are going to have to have enough money saved up to pay for the closing costs and for a down payment. An average down payment is close to 15% of the home’s value or the home’s price, whichever is the lowest. It is a good idea to try to put a minimum of 20% down, though. If you can’t afford a 20% down payment, you are going to have to pay private mortgage insurance, which is added to the monthly house payment.
The closing costs on most homes are equal to close to 5% of the price of the home. It is important to get a closing cost estimate before buying a home. The estimate may be off a little but it should give you a good idea. That way you can know how much money you need to set aside for closing costs. Having more money saved up just in case is the best plan.
You will know when you are ready to buy a home when you have a firm plan on how much you are going to spend and you know you can stay within that budget. The mortgage payment every month should not be more than 25% of the money you make each month. Some lenders will qualify you for more when you are ready to buy a home but that is not a good idea. You know how much you can afford so don’t go over that.
Buying Your First Home, Here’s What You Need To Know
Are you tired of apartment living and ready for a home of your own? Now is the time to act. When you start looking for your first home, you are taking a step toward a better life and a better financial situation. If you are thinking about buying a new home, you have to understand how the process works and educate yourself about the real estate market.
You should not even start looking at houses until you do some homework. You need to determine what the average interest rate is right now, what the monthly payments are on a loan like you are considering, and how much you can actually afford to spend. You also need to know how much the average home costs in your area. Once you have this information, you will be on the right track to buying your first home. Other things to focus on first include how much money you make and what your credit is like. It is important to be realistic about what you can afford so you don’t get your hopes up if you find a home you like whose price tag is out of your budget.
After you have all this research done, you are ready to start looking for a real estate agent. This is important because having a good real estate agent makes a big difference in how likely you are to find the home you are looking for and get a good deal from the seller and the mortgage company. A good real estate agent will be able to find you a home that meets all your needs and wants. Your real estate agent should be able to help you find a home inspector and a lender that are reliable and trustworthy. When you have everyone you need ready for you, you can be sure you get the best deal and the home of your dreams.
When you find your dream home and are ready to get down to purchasing it, you have to know what all the real estate terms that you are going to hear mean. There are a lot of unfamiliar terms about loans, the market, and other real estate issues that you will hear. If you are confused about anything you hear, you should either find out what it means or ask someone else. Buying your first home is a big deal and you need to take it seriously and understand what you are getting into.
It is not always easy to buy your first home but it is exciting. If you educate yourself about the real estate market and everything else involved, you will be able to make better decisions. It is important to be an educated consumer so you find the home of your dreams and get a deal on it that is right for you.